THE LOAN PROCESS
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Loan Application and Disclosures: The Uniform Residential Loan Application is a standard industry form that provides the basis for loan approval. The information provided on the application will determine your status as a qualified borrower. You can begin the loan process in one of three ways; an online application, a telephone interview, or a face to face interview. The online application will always be followed by a telephone interview or a face to face interview. During the interview we ask a number of questions not on the Loan Application that will help us determine the BEST mortgage for your particular situation. During the interview process, we will also get a copy of your current credit report from our Credit Department. We will review your credit report with you to verify the accuracy of that report. The credit report will assist us in prequalifying you for your loan. The disclosures we have you sign are standard forms and required by law.

"Extremely pleasant - excellent. Jerry was extremely patient with my ignoranceof the whole process. He was very reassuring and smoothed my frazzeled nerves very professionally." -- Sandra Thompson

Prequalifying: Once we have completed the application, we begin the qualification process. This involves making sure all the guidelines for the loan program we have selected are completed. This may include adequate income to debt ratios, sufficient reserves (cash or savings left over after closing), employment requirements, appraisal, property and ownership requirements, verifying assets required to make down payment and closing costs and verifying mortgage or rent history. In addition to the required credit scores, there are sometimes additional requirements for sufficient credit history. When we are able to use an AUS (Automated Underwriting System) for loan approval, it frequently reduces the amount of verification and documentation needed.

Lock vs. Float: Lock and float are terms associated with your interest rate. When someone “locks” in a loan, they are securing an interest rate. If rates go up or down after they lock, the locked interest rate remains the same. When someone “floats” a loan, they are taking a risk. Interest rates change daily either up or down. The interest rate will vary until the borrower locks in the rate.

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